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Background documentationCustomizing Settings for Interest on Arrears Calculation

 

To calculate interest on arrears for loans, you need to make the following settings in Customizing for Account Management (FS-AM):

  • Customizing activities Define Customer Calculation Bases and Display SAP Calculation Bases, under Start of the navigation path Product Management Next navigation step Financial Conditions End of the navigation path

    You can display the calculation bases provided by SAP, but you can also create new calculation bases in the Z namespace. Select the method Generate ARREARS Balance Series from Balances of Two Turnover Classes. Enter the parameters for both the receivables balance (such as requested interest) and payment balance (such asinterest payments) in the reference unit.

    Define the following by choosing Constants.

    • In the Receivable Exclusive field, you specify whether the system is to include or exclude the expected payment date when calculating the interest on arrears.

    • In the Receivable Exclusive field, you specify whether the system is to include or exclude the expected payment date when calculating the interest on arrears.

    Note Note

    In addition to the calculation bases for charges and interest, a calculation basis for interest on arrears is also available.

    End of the note.

  • Customizing activity Define Condition Type under Start of the navigation path Product Management Next navigation step Financial Conditions End of the navigation path

    You create a pricing condition for each interest on arrears type. You also create one payment condition for interest on arrears.

    Note Note

    In the Working With Restart Information field, you can select Overlap and define the overlap days. These define the number of tolerance days for which the system does not calculate interest on arrears. If the payment is not made until after the tolerance days have passed, the system calculates the interest on arrears from the expected payment date.

    End of the note.

  • Customizing activity Define Condition Group Types under Start of the navigation path Product Management Next navigation step Financial Conditions End of the navigation path

    For each condition group category, you define at least one condition group type (see condition group categoryand condition group type). You assign the relevant condition types to the condition group type as a selection list (see condition type). You assign the condition types for the pricing conditions of interest in arrears to a condition group type with the condition group category 1 (settlement). You assign the condition type for the pricing condition of interest in arrears to a condition group type with the condition group category 6 (payment).

  • Customizing activity Create Account Product or Change Account Product under Start of the navigation path Product Management Next navigation step Product Definition Next navigation step Account Products End of the navigation path

    In the relevant product for the pricing conditions under Financial Conditions, you specify the attributes under Condition Groups. In the relevant product, under Inpayment Agreement, you have specify the attributes Standard Condition Group Type and Standard Condition Group.

    Note Note

    You have already defined the condition groups in the Current Settings (seeCurrent Settings for Interest on Arrears Calculation).

    End of the note.